Apple supplier Foxconn looks to build American factory

China Foxconn Deaths

Associated Press

Foxconn is reportedly looking to build manufacturing facilities in the U.S. Above, a recruiter from Foxconn talks to job applicants outside the factory in Shenzhen in southern China's Guangdong province in 2010.

Foxconn is reportedly looking to build manufacturing facilities in the U.S. Above, a recruiter from Foxconn talks to job applicants outside the factory in Shenzhen in southern China's Guangdong province in 2010. (Associated Press)

Shan Li

Foxconn Technology Group, the Taiwanese manufacturer for tech firms such as Apple Inc., is looking to build a factory in the United States.

The major maker of iPhones and iPads is in talks with several states including Arizona and Colorado to set up a manufacturing facility to make high-tech parts, company spokesman Simon Hsing told Bloomberg.

Rising transporation costs and wages in mainland China has spurred some companies to look at bringing some manufacturing capacity closer to home either within the U.S. or in nearby Mexico or Canada. Many are taking advantage of advanced equipment and proximity to home markets to make the economics of manufacturing in North American more feasible.

Foxconn Chairman Terry Gou told employees on Sunday that the company may build advanced manufacturing plants in U.S. to be closer to American customers such as Apple and also look for cheaper production expenses with low-cost factories in Indonesia, according to Reuters.

"The U.S. is a must-go market," Gou said, according to Reuters.

The strategic rethinking comes at a time of renewed focus in the U.S. on bulking up the American manufacturing base. Apple has plans to build a factory in Arizona and last year began production of the Mac Pro personal computer in Texas as part of a multimillion-dollar "Made in the U.S.A." push.

A push into the U.S. may also help brighten Foxconn's public image, which has been marred in recent years with reports of poor working conditions, worker suicides, riots and factory explosions.